ASTK18234U The Politics of Crisis and Austerity
Bachelor student (2012 programme curriculum): 10 ECTS
Bachelor student (2017 programme curriculum): 7.5 ECTS
Master student: 7.5 ECTS
The course is an elective for the core subject in International Political Economy.
This course considers the relationship between economic crises and the cluster of policy solutions known as ‘austerity’. These are issues of great contemporary relevance and urgency, but the course also situates them within a broader historical and theoretical discussion. It asks why austerity is often seen as the most efficacious solution to economic downturn, and considers whether the resort to austerity in the present repeats errors of the past in light of the history of crises of capitalism.
The course seeks to understand the intellectual roots of ‘austerity’ and examines the institutional and ideational factors that explain its widespread use by policy-makers in the present period. The course considers whether austerity as a policy package is either compatible with or sustainable under democratic politics. The course examines the social impact of austerity budgeting in areas such as public health and discusses the emergent politics of anti-austerity on both sides of the political spectrum.
The course draws mostly on literature from the political science subfields of comparative and international economy. Students will also be asked to read some texts from the literatures in macroeconomics, economic history, sociology and public health.
Introduction: the key themes of the course
Economic crises in historical perspective 1
Economic crises in historical perspective 2
Austerity: the default condition of capitalist democracies?
Austerity: the history of an idea
Governing (through?) austerity
Austerity and democracy
Are we all austerians now?
The social consequences of austerity 1 (social policy and public health)
The social consequences of austerity 2 (gender)
Resisting austerity from the extremes
On completion of the course, students should:
(a) be able to demonstrate familiarity with the main academic and policy debates about the relationship between economic crises and austerity politics;
(b) be able to relate concepts and theories about crisis and austerity to concrete empirical cases, both historical and contemporary;
(c) be able to make informed, analytical evaluations of rival approaches on questions relating to economic crisis and austerity, and
(d) be able to think critically about the broader analytical significance of debates about economic crisis and austerity to the fields of comparative and international political economy. In examining the relationship between economic crises and austerity, the course asks students to consider a wide range of literature and to assess its significance its importance to questions of contemporary policy relevance in (though not necessarily confined to) Europe.
The course seeks to enhance key analytical and critical skills such as the application of theoretical debates to concrete cases; the development of a clear thesis supported by appropriate forms of evidence; literature searching; problem-solving; comparison; and working with and drawing insight from a range of disciplinary and sub-disciplinary fields.
Students will be encouraged to link scholarly discussions to urgent policy questions. Working with diverse literature will promote students’ ability to interpret and synthesise different positions. Small group work will encourage collaboration and team-building.
An extensive week-by-week reading list, featuring core reading for each topic will be made available in August 2016. The following list offers an illustration of some of the texts that will be used on the course:
Alesina, A. and Tabellini, G. ‘A Positive Theory of Fiscal Deficits and Government Debt’, Review of Economic Studies 57(3), 1990, pp. 403-414.
Ban, C. ‘Austerity versus Stimulus? Understanding Fiscal Policy Change at the International Monetary Fund Since the Great Recession’, Governance 28(2), 2015, pp. 167-183
Berry, M. ‘The UK Press and the Deficit Debate’, Sociology Published online before print May 20, 2015 , doi: 10.1177/0038038515582158
Blyth, M. Austerity: the History of a Dangerous Idea (Oxford University Press, 2013)
Bohle, D. ’Responsible Government and Capitalisms Cycles’, West European Politics 37(2), 2014, pp. 288-308.
Bordo, M. and James, H ’The European Crisis in the Context of the History of Previous Financial Crises’, Journal of Macroeconomics 39(B), 2014, 275-284.
Bramall, R. ‘Popular culture and anti-austerity protest’ Journal of European Popular Culture, 3(1). 2012 pp. 9-22. Available at http://eprints.brighton.ac.uk/12492/
Burnham, P. ’Depoliticisation: economic crisis and political management’, Policy and Politics 42(2), 2014, pp. 189-206.
Clarke, J and Newman, J. ’The Alchemy of Austerity’, Critical Social Policy 32(3), 2015, pp. 299-319
Crafts, N. And Mills, T.C. ’Self-defeating austerity? Evidence from the 1930s’, European Review of Economic History doi: 10.1093/ereh/heu024. First published online: February 4, 2015
Dellepiane-Avellaneda, S. ‘The Political Power of Economic Ideas: The Case of “Expansionary Fiscal Contractions”, British Journal of Politics and International Relations, 17(3), 2015, pp. 391-418
Eichengreen, B. and Temin, P. ‘The Gold Standard and the Great Depression’, Contemporary European History 9(2), 2000, pp. 183-207  Available at http://isites.harvard.edu/fs/docs/icb.topic467999.files/October%2022%20and%2027%20-%20Trade%20Money%20and%20Finance/Eichengreen.pdf
Gigier, N. and Nelson, M. ‘The electoral consequences of welfare state retrenchment: Blame avoidance or credit claiming in the era of permanent austerity?’, European Journal of Political Research 50(1), 2011, pp. 1-23
Kaminsky, G.L., Reinhart, C.M. and Vegh, C.A. ‘The Unholy Trinity of Financial Contagion’, Journal of Economic Perspectives 17(4), 2003, pp, 51–74 Available at http://homepages.wmich.edu/~balik/VSE/JEPContagion.pdf
Karamessini, M. ‘Introduction – women’s vulnerability to recession and austerity: a different crisis, a different context’, in Karamessini, M. and Rubery, J. (eds) The economic crisis and the future for gender equality, Routledge, 2013, pp. 3-16 . Available at http://samples.sainsburysebooks.co.uk/9781135073985_sample_492854.pdf
Karanikolos, M et al ‘Financial crisis, austerity, and health in Europe’, The Lancet 381(9874), 2013, pp. 1323-1331.
Konzelman, S. (2014) ‘The political economics of austerity’, Cambridge Review of Economics 38(4), 701-741.
Koronaiou, A. et al ‘Golden Dawn, austerity and young people: the rise of fascist extremism among young people in contemporary Greek society’, The Sociological Review 63(S2), 2015, pp. 231-249
Korpi, W and Palme, J ‘New Politics and Class Politics in the Context of Austerity and Globalization: Welfare State Regress in 18 Countries, 1975–95’, American Political Science Review 97(3), 2003.
Lethbridge, J. ‘Impact of the Global Economic Crisis and Austerity Measures on Women’, Public Services International Research Unit, 2013 (Report) . Available at http://www.eif.gov.cy/mlsi/dl/genderequality.nsf/0/BA91A856C4C2C940C2257C2A00256123/$file/2012%20crisis-impact%20austerity%20on%20women.pdf
Lodge, M and Hood, C ‘Into an Age of Multiple Austerities? Public Management and Public Service Bargains across OECD Countries’, Governance 25(1), 2012, pp. 79-101
Mair, P. ‘Bini Smaghi Vs the Parties: Representative Government and Institutional Constraints’, EUI Working Paper Series RSCAS 2011/22, Robert Schuman Center for Advanced Studies, Florence, 2011. Available at http://cadmus.eui.eu/bitstream/handle/1814/16354/RSCAS_2011_22.pdf?sequence=1
Mair, P. Ruling the Void: the Hollowing Out of Western Democracy (Verso, 2013)
Müller, G. J ‘The Debate Over Austerity’, International Finance 17(3), 2014, pp. 403-418
Neal, L. and Weidenmier, M. ‘Crises in the Global Economy from Tulips to Today’, in Bordo, M.D., Taylor, A.M. and Williamson, J.G. (eds). Globalization in Historical Perspective , University of Chicago Press, 2005, pp. 473-514. Available at http://www.nber.org/chapters/c9596.pdf
Ostry, J.D., Ghosh, A.R. and Espinoza, R. (2015) 'When Should Public Debt Be Reduced?’ IMF Staff Discussion Note, SDN 15/10 https://www.imf.org/external/pubs/ft/sdn/2015/sdn1510.pdf
Pierson, P. ‘Coping with permanent austerity: welfare state restructuring in affluent democracies’, in Pierson, P. (ed.) The New Politics of the Welfare State, Oxford University Press, 2001, pp. 410-456
Pierson, P. ‘From expansion to austerity: the new politics of taxing and spending’, in Levin, M.A., Landy, M.K. and Shapiro, M. (eds) Seeking the Center: Politics and Policymaking in the New Century, Georgetown University Press, 2001, pp. 54-80.
Reinhart, C.M and Rogoff ‘Is the 2007 US Sub-Prime Financial Crisis so Different? An International Historical Comparison’, American Economic Review 98(2), 2008, pp. 339-344.
Schäfer, A and Streeck, W. (eds) Politics in the Age of Austerity (Polity 2013)
Sen, A. ‘The economic consequences of austerity’, New Statesman 4 June 2015 http://www.newstatesman.com/politics/2015/06/amartya-sen-economic-consequences-austerity
Steinberg, D.A., Koesel, K.J. and Thompson, N.W. ‘Political Regimes and Currency Crises’, Economics and Politics, Article first published online, 3 July 2015 DOI: 10.1111/ecpo.12060
Streeck, W. Buying Time: the Delayed Crisis of Democratic Capitalism (Verso, 2014)
Streeck, W. ‘The Rise of the European Consolidation State’, MPIfG Discussion Paper 15/1 (2015)
Feedback on graded assignments will be available on request
- 7,5 ECTS
- Type of assessment
- Written assignmentFree assignment
- Exam registration requirements
Free written assignment
- Marking scale
- 7-point grading scale
- Censorship form
- No external censorship
Free written assignment
Criteria for exam assesment
- Grade 12 is given for an outstanding performance: the student lives up to the course's goal description in an independent and convincing manner with no or few and minor shortcomings
- Grade 7 is given for a good performance: the student is confidently able to live up to the goal description, albeit with several shortcomings
- Grade 02 is given for an adequate performance: the minimum acceptable performance in which the student is only able to live up to the goal description in an insecure and incomplete manner
- Class Instruction